Task forces to monitor microfinance institutions
MFIN has signed up with MFTransparency, a global NGO, to promote transparency in the communication of interest rates to clients.
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Microfinance Institutions Network (MFIN), a self-regulatory organisation of microfinance institutions (MFIs) in India, has decided to set up seven task forces to monitor and manage the MFIs and look into credit bureau, transparency, code of conduct, human resource development, policy issues, product diversification and media relations.
Addressing a press conference here on Saturday, Vijay Mahajan, President of MFIN, said the organisation had made significant progress in transparency and credit bureau initiatives. It was already in discussions with leading credit bureaus. It was decided that all the 42 MFIN members would participate and co-operate with the task force to create a data base of micro finance clients.
MFIN, earlier this year, had laid out a code of conduct, which underscored fair practices, good governance and responsible lending. It called for limiting borrowers’ group loan sizes to less than Rs. 50,000 in total from not more than three microfinance institutions. The code of conduct also wanted the MFIs to share data with the credit bureaus and adopt whistleblower policy in case of violations. Mr. Mahajan said MFIN had also signed up with MFTransparency.org, a global NGO, to promote transparency in the communication of interest rates to clients. It had also created task forces to work on various parameters of responsible lending.